Vijaya Diagnostic Centre Limited

Vijaya Diagnostic Centre delivered its highest-ever quarterly revenue of ~INR 205 crores in Q3 FY26, marking a robust 21.4% year-on-year growth. This performance was driven by a 14.7% year-on-year increase in test volumes, complemented by a 6.7% growth from changes in the test mix. The company's integrated business model showed resilience, with balanced contributions from both radiology (37% of revenue) and pathology segments, and 92% of revenue coming from B2C operations.

The company achieved a healthy EBITDA of ~INR 86 crores in Q3 FY26, reflecting a 28.2% year-on-year growth. The EBITDA margin expanded by 221 basis points year-on-year to 41.9%. Profit After Tax (PAT) grew 22.3% year-on-year to ~INR 43 crores, with a PAT margin of 21%. For the nine months ended December 31, 2025, consolidated revenue stood at ~INR 595 crores (up 17.1% YoY) with an EBITDA margin of 40.6% and PAT of ~INR 125 crores.

Vijaya Diagnostic continued its network expansion, commissioning two new hub centers in West Bengal (Phoolbagan and Diamond Harbour) and two in core markets (Khammam and Nandyal). Notably, two hubs launched in Q1 FY26 in West Bengal (Krishnanagar and Barasat) achieved breakeven within just three quarters, significantly ahead of the anticipated one-year timeline. This success highlights strong demand for quality integrated diagnostic services in new regions.

The company has strengthened its leadership team with key strategic hires, including a new Chief Financial Officer, Chief Operating Officer, Chief Technology Officer, and Lab Director. Management emphasized continued investment in talent across clinical and corporate functions. Furthermore, Vijaya is focusing on digital initiatives, including a high-end CRM and other internal applications, and has migrated its core applications to the cloud, aiming to enhance customer experience and operational efficiency.

The wellness segment demonstrated significant traction, growing approximately 8% year-on-year in Q3 FY26 and now contributing 15% to total revenue, up from 8% pre-COVID. Management attributes this growth to increased health consciousness and expects the segment to continue growing, potentially exceeding 20% of total revenue. For Q4 FY26, the company anticipates overall revenue growth to surpass 15% and a slightly higher contribution from the wellness segment.

For FY26, the company has utilized INR 159 crores in capex, inclusive of replacement capex. The estimated capex outlay for new centers in FY27 is between INR 100 crores to INR 120 crores. Vijaya Diagnostic maintains a strong net surplus cash position of INR 260 crores as of December 31, 2025. While open to M&A opportunities, particularly large ones that facilitate entry into new geographies, the current focus remains on organic growth and stabilizing existing operations.

The core Hyderabad market demonstrated robust organic growth of approximately 15% year-on-year in Q3 FY26, with balanced contributions from both pathology and radiology, without the addition of new hubs. Management noted minimal competitive reaction in new geographies like Kolkata and Pune, attributing it to competitors' limited integrated presence. They also expressed confidence in Vijaya's integrated model and specialized services as key differentiators against new entrants in radiology.